The French-Japanese auto alliance announced a technology partnership that will make its vehicles among the first to use Google's Android operating system in the dashboard, letting Alphabet Inc's software control mapping and navigation, infotainment and a suite of apps directly installed in the car.
Googles Android's OS, the world's predominant smartphone OS, will be in an estimated 14 million cars from 2022, according to number from the Alliance. This may partly be on account of the fact that now, the automakers have been able to assess the technology in terms of generating valuable customer data, that could be harnessed as a revenue generating factor in the years ahead, claim experts.
Google will finally be entering the vehicle space. Neither Renault-Nissan-Mitsubishi nor Volvo stated how much access Google would have to a vehicle's data. The Wall Street Journal first stated that the risk involved in the venture poses more of a risk for the auto companies as they can possibly lose customer relationship sand future revenue for those individuals who aren't satisfied with Google's services.
Google LLC is taking Android into a potentially highly lucrative but so far elusive new market.
This infotainment allows drivers to access the maps and app store through voice assistant from the vehicle's dashboard.
The carmakers said in a statement that the Google deal would give customers "one of the most intelligent infotainment systems in the market", and a seamless experience as they move in and out of their vehicles.
IHS Markit estimates that auto makers this year are using some level of Android software in 19% of the infotainment systems installed in vehicles globally.
The partnership would enable Google to develop an operating system behind the entertainment and GPS systems to be installed in vehicles manufactured by the trio automakers.
Silicon Valley's increasing interest in the auto business has unnerved auto makers globally, especially as Google's self-driving vehicle project as evolved into a stand-alone business called Waymo and aims to begin commercially transporting riders this year.